Can TurboTax fill out Kentucky state tax form 740-NP-R?

[englehn11]

Lived in OH in 2018, worked two jobs, one was in KY.  My KY job withheld KY state & city taxes from my pay.  TurboTax filled out state Form 740-NP for my KY wages.  But before I e-filed, I looked over Form 740-NP and saw that it says I must fill out Form 740-NP-R instead, as I’m a resident of a reciprocal state.  Can TurboTax fill out the Form 740-NP-R instead of the Form 740-NP?  If I have to fill it out myself outside of TurboTax, how do I get TurboTax to delete the Form 740-NP it already filled out, and not e-file it?   

[DanielV01 · Accepted solution]

Yes.  Go back to the beginning of the Kentucky return, and instead of selecting the nonresident return, select the nonresident reciprocal return.  This is KY Form 740 NP-R.  This will refund all of your KY state taxes withheld (but you will pay Ohio tax on this income).  You want to advise your employer if you still work there that you need Ohio tax withheld and not KY tax withheld so that you don't have to do this next year.

[Hal_Al]

KY has a specific form (740 NP-R ) for a reciprocal state refund. Rather than paying TurboTax for KY software, you should try filing that form by hand. It looks pretty  simple. 

https://revenue.ky.gov/Forms/740-NP-R%20Kentucky%20Individual%20Income%20Tax%20Return%20(Nonresident....

The reciprocity agreement does not apply to local city taxes.  You can not get those refunded, but if you live in an Ohio city with a tax, they may give you a credit or partial credit. Many do.  You need to check with your city.

[plewsader]

I am having the same issue. I've selected non-resident reciprocal return as I live in Indiana but worked part of the year in KY and turbo tax still says that I need fill out form 740 NRP. No matter how many times I select this option it keeps telling me this.

[Hal_Al]

In the personal info section, when it asks if you made money in another state, answer NO, per the reciprocal state instructions, on that page. This will prevent TurboTax from thinking you need to file an KY return.

You only use form 740 NP-R to get a refund of wrongly withheld KY state tax.